Following consultations with representatives from a wide range of religious groups, the airline said it would permit staff to wear a lapel pin symbol such as a Christian cross or Jewish Star of David, the company said.
In addition, and in response to complaints by some Christians, it "would allow some flexibility" in its usual policy banning staff from wearing chains over their uniforms.
"Unintentionally we have found ourselves at the centre of one of the hottest social issues in current political debate," said BA chief executive Willie Walsh.
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Check-in staffer Nadia Eweida was told last October by BA managers she must not display a small necklace crucifix, prompting an outcry from the Church of England. One cabinet minister described BA's decision as "loopy".
The incident coincided with a wider debate in Britain about religious clothing or symbols after Prime Minister Tony Blair and other ministers said Muslim women who wore full veils hindered community relations.
Walsh said the change to BA's uniform policy, which comes into effect next month, "will enable staff to wear symbols of faith openly without detracting from the uniform".
Eweida, who lost an internal appeal against the original decision in November and has been on unpaid leave welcomed the change of policy.
"My dignity will have been sort of restored because I have suffered for my faith ... I hope that British Airways now will start to listen to a Christian voice," she told the BBC.